Bill would restore salaried Delphi retirees' pensions

Theresa Clift

Published: September 13, 2012 6:00 am ET

Related to this story

Topics Automotive

WASHINGTON (Sept. 13, 1:45 p.m. ET) — An Ohio senator wants to give $1 billion from a General Motors stock sale to salaried Delphi Automotive retirees who lost much of their pension coverage during the supplier’s bankruptcy proceedings, but the Delphi Salaried Retirees Association says it prefers another solution.

U.S. Sen. Sherrod Brown, D-Ohio, plans to introduce a bill Thursday that would force the U.S. Treasury to sell about $1 billion of its GM stock holdings and put the funds in an account that would supplement the Delphi retiree pensions.

“Many Delphi retirees have yet to receive the pensions they earned and deserve,” Brown said in a statement. “Now that General Motors is profitable once again and the federal government is preparing to sell its stake in the company, a portion of the proceeds should be used for those shortchanged retirees.”

The Treasury, as a result of the 2008-2009 bailout of GM, owns about 500 million shares of GM stock, a stake valued at about $11.6 billion at current market prices. GM shares closed today at $23.13, up 16 cents.

Den Black, chairman of the Delphi Salaried Retirees Association, said his group would prefer a solution that does not require taxpayer dollars or slow-moving legislation.

“We’re more than happy for all the help we can get from anywhere but the issue here is that this can be fixed now,” Black said.

He said the association has been working on several ways to achieve the goal, including proposing an administrative action to use funds from the government’s Pension Benefit Guaranty Corp. instead.

The association filed a federal lawsuit against Pension Benefit Guaranty Corp. in Detroit in October 2009, which is in the discovery phase, Black said.

A Brown spokeswoman said that in addition to his proposal, Brown also supports the retirees’ proposed settlement, and has been working with U.S. Sen. Debbie Stabenow, D-Mich., to persuade the administration to also consider that proposal.

GM owned Delphi until 1999, but still has received parts from the company since. Delphi filed for bankruptcy in 2005, and subsequently sold off or closed most of its U.S. plants. It emerged from bankruptcy in October 2009.

When Delphi terminated the pension plans of 70,000 people in 2009, it left a $7.2 billion shortfall.

During the bailout, GM topped off the pensions to Delphi hourly workers, most of whom are in the UAW, but did not do the same for Delphi’s more than 21,000 nonunion salaried retirees.

The Pension Benefit Guaranty Corp. assumed the pension plans and must pay $6 billion of the losses, but retirees would still lose about $1 billion or more, the Government Accountability Office said in December, The Detroit News reported.


Comments

Bill would restore salaried Delphi retirees' pensions

Theresa Clift

Published: September 13, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Plasan investing in capacity, jobs to supply auto market with carbon fiber

September 19, 2014 3:05 pm ET

Growth in the emerging automotive market for carbon-fiber composites has spurred a $29 million investment in a Walker, Mich., factory    More

Image

Toyoda Gosei expanding in Mexico

September 19, 2014 2:33 pm ET

Toyoda Gosei North America Corp. is investing $67 million in a 398,000-square-foot plant in central Mexico to supply the automotive industry with...    More

Exo-s buys injection and blow molder in Mexico, expands footprint

September 19, 2014 2:15 pm ET

Custom molder Exo-s Inc. has bought an injection and blow molding operation in San Juan del Rio, Querétaro, Mexico.    More

Image

Smartphone work adds 52 percent to sales for China's Eva Precision

September 18, 2014 4:37 pm ET

Growth in supplying the smartphone and automotive industries helped Chinese processor Eva Precision Holdings Ltd. push injection molding sales up 52...    More

Image

Cascade Engineering founder Keller to step down as CEO

September 16, 2014 8:33 pm ET

Cascade Engineering Inc. is undergoing a transition as President Mark Miller will also add the role of CEO, replacing founder Fred Keller, who has led...    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook – North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events